• on Jun 1st, 2015 in Ideas Worth Exploring | 1 comment

    Here’s a question: What percentage of America’s 30 million companies export?

    • 25 percent
    • 10 percent
    • 1 percent

    With global ecommerce topping $1.3 trillion last year, we would understand if you picked the top choice. The answer, however, is 1 percent – considerably lower than all other developed countries – according to the Department of Commerce. And of U.S. companies that do export, 58 percent export to only one country, usually Canada or Mexico.

    Global ecommerce has exploded recently, jumping 24 percent last year and expected to leap another 20 percent this year. So why do so few U.S. companies take the plunge?

    Experts say many companies have tended to think the U.S. domestic market is both large and diverse enough to accommodate steady growth. But with 70 percent of world’s buying power located outside the United States and with emerging middle classes in highly populated countries like China and Brazil, such a parochial view leads to a flawed strategy.

    Of course, challenges abound for companies attempting to expand globally. This is especially true for small and medium-sized businesses (SMEs), which often don’t have the time or money to figure out how to export. Among the pain points for SMEs:

    • customs forms and procedures are confusing, as is knowing import/export restrictions and the harmonized tariff code;
    • payment and currency in other countries;
    • lack of technological capabilities;
    • logistics challenges; and
    • how to best market in other countries.

    The market is responding with solutions, including marketplace platforms like Amazon, eBay, and Alibaba, as well as providers, such as Borderfree, which takes an online retailer’s website and makes it international by localizing content and accepting international payments while displaying total costs and shipping information. Still, more options would be helpful, especially for SMEs that need simple, one-stop solutions.

    Enter the U.S. Postal Service. Some observers see a big opportunity for the Postal Service, especially if it could offer services – either on its own or with a partner – that remove major hurdles like customs clearance, fully landed costs and address verification.

    What services would you like to see the Postal Service offer in global ecommerce? How best might the Postal Service partner with existing providers to give SMEs a complete service offering?

  • on Jan 21st, 2013 in Ideas Worth Exploring | 4 comments

    The U.S. Postal Service can play unique and positive roles in the expansion of the peer-to-peer marketplace, as suggested in a new OIG white paper, Peer-to-Peer Commerce and the Role of the Postal Service. American consumers are familiar with peer-to-peer (P2P) digital commerce and increasingly comfortable buying and selling that way. Millions of people place offerings and shop on eBay, Craigslist, etsy, and other sites every day. In recent years, the P2P segment has grown beyond these traditional product sites and now includes services from which users can rent a vacation room in someone’s house, lend or borrow a private car, or even hire someone locally for small jobs, such as baking cookies for a child’s classroom party or assembling modular furniture. However, there are a number of problems in current P2P commerce that may prevent wider adoption by the American public. Market participants face the challenges of balancing convenience with privacy and the potential for economic or physical harm. Some of these issues can be addressed through enhanced digital identity and authentication services, but there are other opportunities, which the paper presents. The paper describes P2P digital commerce and challenges and gaps in the current marketplace, including several types of fraud and threats to personal property and physical safety. It then identifies Postal Service products and services that exist today or might be developed in the future to facilitate market expansion. Current postal ancillary and special services, both physical and digital, are well suited to the P2P market. These include insurance, Registered Mail, Certified Mail, Collect on Delivery (COD), Track and Trace, Return Receipt and Return Receipt for Merchandise, Restricted Delivery, and other services. Please share your comments on this concept as well as observations on your own P2P experiences, if any, below. Do you believe a trusted intermediary such as the Postal Service could help in this segment? Please give us your comments below: